Correlation Between Cannabis Suisse and Goodbody Health

Can any of the company-specific risk be diversified away by investing in both Cannabis Suisse and Goodbody Health at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining Cannabis Suisse and Goodbody Health into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between Cannabis Suisse Corp and Goodbody Health, you can compare the effects of market volatilities on Cannabis Suisse and Goodbody Health and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in Cannabis Suisse with a short position of Goodbody Health. Check out your portfolio center. Please also check ongoing floating volatility patterns of Cannabis Suisse and Goodbody Health.

Diversification Opportunities for Cannabis Suisse and Goodbody Health

0.0

Correlation Coefficient

Cannabis Suisse  Goodbody Health

Pay attention - limited upside

The 3 months correlation between Cannabis and Goodbody is 0.0. Overlapping area represents the amount of risk that can be diversified away by holding Cannabis Suisse Corp and Goodbody Health in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Goodbody Health and Cannabis Suisse is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on Cannabis Suisse Corp are associated (or correlated) with Goodbody Health. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Goodbody Health has no effect on the direction of Cannabis Suisse i.e., Cannabis Suisse and Goodbody Health go up and down completely randomly.

Pair Corralation between Cannabis Suisse and Goodbody Health

If you would invest  1.50  in Cannabis Suisse Corp on December 10, 2024 and sell it today you would lose (0.34) from holding Cannabis Suisse Corp or give up 22.67% of portfolio value over 90 days.

Time Period	3 Months [change]
Direction	Flat
Strength	Insignificant
Accuracy	93.65%
Values	Daily Returns

Cannabis Suisse Corp  vs.  Goodbody Health

Cannabis Suisse Corp

Risk-Adjusted Performance

Good

Compared to the overall equity markets, risk-adjusted returns on investments in Cannabis Suisse Corp are ranked lower than 12 (%) of all global equities and portfolios over the last 90 days. Despite fairly unfluctuating basic indicators, Cannabis Suisse demonstrated solid returns over the last few months and may actually be approaching a breakup point.

Goodbody Health

Risk-Adjusted Performance

Very Weak

Over the last 90 days Goodbody Health has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly stable basic indicators, Goodbody Health is not utilizing all of its potentials. The newest stock price disturbance, may contribute to mid-run losses for the stockholders.

Pair Trading with Cannabis Suisse and Goodbody Health

The main advantage of trading using opposite Cannabis Suisse and Goodbody Health positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if Cannabis Suisse position performs unexpectedly, Goodbody Health can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Goodbody Health will offset losses from the drop in Goodbody Health's long position.

The idea behind Cannabis Suisse Corp and Goodbody Health pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

Check out your portfolio center.

Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the ETFs module to find actively traded Exchange Traded Funds (ETF) from around the world.